Former Las Vegas Broker Calugar Convicted on Market-Timing Charges

January 25, 2006 ( - Daniel Calugar, former head trader and owner of Securities Brokerage, Inc. was arrested and convicted for a felony violation of New York's Martin Act.

According to the  announcement on New York State Attorney General Eliot Spitzer’s Web site, Calugar pled guilty in Manhattan State Supreme Court to charges that he entered into a secret agreement in August 2001 that defrauded the Franklin Small-Mid Cap Growth Fund (See  Massachusetts Hits Franklin with Fraud Charges).

Calugar faces up to four years in prison, the maximum sentence allowable under the law, according to the announcement.    He has already agreed to pay $153 million in restitution to the Securities and Exchange Commission (See  Calugar Agrees to Record Settlement to Market-Timing Charge).

Calugar was released on his own recognizance and faces sentencing on March 23.